How do you know if someone left you Bitcoin after death? - page 2.

DireWolfM14

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Quote from: Welsh on July 15, 2021, 12:40:22 PM

The conundrum here is; if you put it into your will, you are effectively trusting a third party to manage your funds after death, which is completely destroying the point of managing your money in the first place. The other side is, if you don't trust a third party to handle this for you, you either need to come up with a process yourself, which is risky in itself since if you can't guarantee they'll be able to follow the instructions, i.e being too cryptic in case someone else stumbles upon it you can't guarantee they'll be able to decipher it, and gain access to the coins.

I've actually spent some time thinking about this, and one solution I came up with was a set of 3 seed-cards, stored in three different safety deposit boxes, at three different banks. The keys to the safety deposit boxes could be included in one's will. As is typical for safety deposit boxes, only the next-of-kin possessing a valid death certificate can access them. A fourth safety deposit box can be set up for the extensions, if needed.

That way, even if the relatives don't know about your bitcoin, they'll learn about it at the reading of the will, and only those relatives who inherit the safety deposit box keys will be able to access it.

Quote from: Welsh on July 15, 2021, 12:40:22 PM

Quote from: DireWolfM14 on July 14, 2021, 05:42:21 PM

I reckon they'll be a little miffed once they get started on the treasure hunt. None of it will be difficult for them, but I'll be laughing my ass off from heaven watching them scramble to find the right ones. I've been tormenting my children from the get-go, so once I'm gone they might actually enjoy my last "Dad Joke" I get to play on them.

I can only imagine how much fun it must have been coming up with the treasure hunt. Hopefully, they don't tear their hair out for years on end, because Dad hid their house money Wink

Lol, I wish I had that much bitcoin. Unfortunately most of my wealth IS my house. It'll be pretty easy for them to figure out where the extensions are hidden, and they'll have access to them regardless. They just won't know where to look at first, is all. It's more to provide them a game of sorts than anything else.

Welsh

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The conundrum here is; if you put it into your will, you are effectively trusting a third party to manage your funds after death, which is completely destroying the point of managing your money in the first place. The other side is, if you don't trust a third party to handle this for you, you either need to come up with a process yourself, which is risky in itself since if you can't guarantee they'll be able to follow the instructions, i.e being too cryptic in case someone else stumbles upon it you can't guarantee they'll be able to decipher it, and gain access to the coins.

Quote from: DireWolfM14 on July 14, 2021, 05:42:21 PM

I reckon they'll be a little miffed once they get started on the treasure hunt. None of it will be difficult for them, but I'll be laughing my ass off from heaven watching them scramble to find the right ones. I've been tormenting my children from the get-go, so once I'm gone they might actually enjoy my last "Dad Joke" I get to play on them.

I can only imagine how much fun it must have been coming up with the treasure hunt. Hopefully, they don't tear their hair out for years on end, because Dad hid their house money Wink

joniboini

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In short, the obvious answer is you have to tell them in one way or another. There are some services to do this too, but you'll need to trust a third party to manage the seed indirectly for you, even if they don't have full control over your wallet. If you're asking for an on-chain solution, as others have mentioned many times, there are none (unless you count timelocked tx). I don't think we need it either since it's really easy to prepare your legacy.

Pmalek

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Quote from: zasad@ on July 14, 2021, 06:07:27 PM

Encrypt your files, private keys and passwords with instructions using the veracrypt program.
Give the encrypted files to your relatives, and send the password through a service that allows you to send letters in the future or pass it through lawyers or notaries.

Using different services or emails has been proposed several times but it's a dangerous way to do go about it. No one can give you guarantees that a service that works today and might work tomorrow will also be available in 20 or 30 years when you pass away. Any secrets you share with them could be lost or even worse, stolen. Time locked transactions are often suggested as a better option.

worle1bm

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Quote from: Magicalking on July 14, 2021, 03:58:30 PM

Bitcoin keys and passwords are kept secret hid away from everyone else. If you forget the keys you can no longer access your wallet. We have learnt this and take the precautions to ensure it does not happen. But what happens to the Bitcoin if the owner of the wallet dies. Is there a way to transfer bitcoins to next of kin and how will the potential heir know?

The network will also don't know whether the person is alive or not but surely it will termed as dormant address if you have not moved any coin out of that wallet for long period of time.So the only possible case is to know your loved ones or nominees before hand about your bitcoin holdings and for the private keys and seed phrase you can use many ways to tell them like write it somewhere safe in cold storage and give them access to that safe or set timelock period as mentioned above so that in case they are gone the coins don't go along with them and used by your family.But if you are asking about any notification from the network after you are dead then it's not possible.

Oshosondy

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Quote from: Magicalking on July 14, 2021, 03:58:30 PM

Bitcoin keys and passwords are kept secret hid away from everyone else. If you forget the keys you can no longer access your wallet. We have learnt this and take the precautions to ensure it does not happen. But what happens to the Bitcoin if the owner of the wallet dies. Is there a way to transfer bitcoins to next of kin and how will the potential heir know?

There is nothing bad to let you heir know how it is going, let him know about bitcoin very well, including the keys and how to recover bitcoin using seed phrase and private key. If your heir knows about this, he will be able to know how to get access to the coins after the owner's died. You can even time lock the bitcoin and let your heir knows about it and how to get access to the time locked coin.

isaac_clarke22

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Quote from: Magicalking on July 14, 2021, 03:58:30 PM

~

If it is a custodial wallet, you still have a shot I believe. Not sure how strict some custodial wallet customer support when it comes to people needing access to a deceased person's account, but I think you need to comply to their confirmation that you're relative of that deceased person. (Please correct me on this if there's a mistake.)

If it is a non-custodial wallet and you lost the private key, then just like what Royse777 mentioned, it is a lost coin.

EvieLannister

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We can write our keys in a notebook, and we can tell our lover or children how to use cryptocurrency, because when we are old enough, our memory is not very good, and it is easy to forget something It is also a good way to tell family members or children, otherwise when we forget the key, we will lose the encrypted currency and cannot find it back.

Coyster

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The topic of the possibility of handing down Bitcoins to loved ones and family on the event of (sudden) death has been discussed many times already, I think that's cause it's very important to know the safest and most reliable methodology to make sure your loved ones enjoy the funds you're accumulating today, should one die all of a sudden; it would actually be sad to look down at them from heaven if they have nothing at the time, knowing your stash is locked somewhere forever, with nobody able to ever unlock it.

See this thread Halloween inspired poll - Would your Bitcoins get passed on if you suddenly died? started by DdmrDdmr, I think it's one of the most comprehensive discussions on this subject, and through the responses/replies of other users in it, you can prolly prepare for the unknown using the safest method possible.

Magicalking

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Quote from: BitMaxz on July 14, 2021, 06:02:22 PM

Well, mine they know bought my PC and mobile password most of my wallet backup save on my PC and for daily basis wallets and exchanges in my mobile phone.
My children already memorized all my passwords so if I'm gone they know how to access both my PC and mobile.

Why not, make a printable backup of private keys and put them where they can easily find them. You can include it on one of your photos on the wall like this one

And tell them someday that they can use that thing in the future. I'm sure Crypto will be widely used so they will learn easily how to redeem them.

I was thinking of adding it in a will. But this is better than giving my keys to a trustee believing they will do the right thing. My family is not interested in crypto, it is my fault they do not see any reason to be interested anyway. I don't talk much about Bitcoin

Quote from: noorman0 on July 14, 2021, 07:04:49 PM

Honestly, there are different ways. One of them is the timelocked transaction method.

However, the ability of the recipient needs to be taken into account when it comes to operating the computer (at least how to access the bitcoin wallet). And it is highly recommended not to use a wallet that relies on third-party authentication apps. I learned from this case, even though the potential heir knows the inheritance of assets from his uncle he has not been able to access them. Only use wallet platforms where you have complete control.

Thanks noormanO, I have never heard of time locked transaction method before. This is my worry, the heir is not able to access his inheritance. No one plans to die but I want to family to be well to do long after I am gone.

NeuroticFish

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Quote from: Magicalking on July 14, 2021, 03:58:30 PM

Is there a way to transfer bitcoins to next of kin and how will the potential heir know?

There were discussed plenty of ways. Normally "the potential heir" is the rest of the family and one should have instructed them during his life time.
Then there's the transaction method.
Then there's the choice of bank's safe deposit, which is normally passed automatically to the heirs if the owner passes away. In the safe deposit can be a seed, be the clues for the seed or can be a part of the seed. And same can be in a will, obviously.

Quote from: cryptoaddictchie on July 14, 2021, 11:05:22 PM

But if the bitcoin is on exchange, Im sure the company can let it ransfer to family member as long they can provide proof of it.

Probably, but I expect that we will outlive most of the current exchanges and... not your keys, not your coins...

cryptoaddictchie

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Quote from: Magicalking on July 14, 2021, 03:58:30 PM

Is there a way to transfer bitcoins to next of kin and how will the potential heir know?

Yes there is. Normally someone has to teaches one of his family member about his asset just in any case there is something bad happened. But for some reason that no one knew it and suddenly the owner dies then thats it. No one can access that unless someone knew his private key to access the wallet.

But if the bitcoin is on exchange, Im sure the company can let it ransfer to family member as long they can provide proof of it.

libert19

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Unless it's accidental death they would surely let their heir know before they are gone, plus here in India, exchanges provide nominee facility.

Darker45

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There is a way of course. You have all the information to get access to your Bitcoin. It is up to you whether you want somebody to know of it or not. I bet many of us are not yet really keen on writing down the information and the steps on how to access our funds when we die. To those who are already old, it is understandable that they should keep instructions somewhere safe. Otherwise, your Bitcoin dies with you.

As for me, I'd rather keep it simple on a piece of paper, perhaps 2 copies, and a couple of USBs containing the same information and instructions.

noorman0

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Quote from: Magicalking on July 14, 2021, 03:58:30 PM

But what happens to the Bitcoin if the owner of the wallet dies. Is there a way to transfer bitcoins to next of kin and how will the potential heir know?

Honestly, there are different ways. One of them is the timelocked transaction method.

However, the ability of the recipient needs to be taken into account when it comes to operating the computer (at least how to access the bitcoin wallet). And it is highly recommended not to use a wallet that relies on third-party authentication apps. I learned from this case, even though the potential heir knows the inheritance of assets from his uncle he has not been able to access them. Only use wallet platforms where you have complete control.

zasad@

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Quote from: Magicalking on July 14, 2021, 03:58:30 PM

Bitcoin keys and passwords are kept secret hid away from everyone else. If you forget the keys you can no longer access your wallet. We have learnt this and take the precautions to ensure it does not happen. But what happens to the Bitcoin if the owner of the wallet dies. Is there a way to transfer bitcoins to next of kin and how will the potential heir know?

Encrypt your files, private keys and passwords with instructions using the veracrypt program.
Give the encrypted files to your relatives, and send the password through a service that allows you to send letters in the future or pass it through lawyers or notaries.

BitMaxz

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Well, mine they know bought my PC and mobile password most of my wallet backup save on my PC and for daily basis wallets and exchanges in my mobile phone.
My children already memorized all my passwords so if I'm gone they know how to access both my PC and mobile.

Why not, make a printable backup of private keys and put them where they can easily find them. You can include it on one of your photos on the wall like this one

And tell them someday that they can use that thing in the future. I'm sure Crypto will be widely used so they will learn easily how to redeem them.

DireWolfM14

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My kids (all adults now) know I have some bitcoin, and I've taught them enough that they'll figure out how to access mine once I've moved on to greener pastures. I keep all of my seed phrases secure in my gun safes, to which they'll have access. To retrieve my bitcoin they'll also need the extensions which are hidden off site, but I've set up a little treasure hunt for them to find those.

I reckon they'll be a little miffed once they get started on the treasure hunt. None of it will be difficult for them, but I'll be laughing my ass off from heaven watching them scramble to find the right ones. I've been tormenting my children from the get-go, so once I'm gone they might actually enjoy my last "Dad Joke" I get to play on them.

jackg

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It's probably a bit like putting money in your mattress. If you tell someone where it is/how to get it, or leave a hunt when you die then they'll find it - otherwise the funds will die with you...

There are alternatives to telling someone explicitly while you're alive as to where your funds are, eg you could leave a note to them in your will or somewhere findable on your computer (eg an unencrypted bitcoin core wallet on a drive and a sticky note of how to access it or a puzzle or something you know the person will be able to solve).

AB de Royse777

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Quote from: Magicalking on July 14, 2021, 03:58:30 PM

But what happens to the Bitcoin if the owner of the wallet dies. Is there a way to transfer bitcoins to next of kin and how will the potential heir know?

It's same. Bitcoin network does not have a separate rules for dead people, in fact how would the network will know someone died :-D
So, unless you have the private key or seed, the coins are lost.

Topic: How do you know if someone left you Bitcoin after death? - page 2. (Read 451 times)